Ravindra Energy's Financial Performance Declines, Experts Give 'Strong Sell' Rating

Ravindra Energy, a smallcap company in the power industry, recently declared its financial results for the quarter ending March 2024. According to the report, the company has seen a significant decline in its financial performance, with a score of -21 compared to -14 in the previous quarter.

One of the major factors contributing to this decline is the company's Profit After Tax (PAT), which has shown a year-on-year decrease of 82.74%. This trend is expected to continue in the near term. Additionally, the company's Net Sales have also fallen by 43.9% compared to the average of the previous four quarters.

Another concerning aspect is the company's increasing interest cost, which has risen by 12.50% in the last quarter. This indicates that the company has taken on more borrowings, which could have a negative impact on its financial health.

Furthermore, the company's Non-Operating Income, which makes up 70% of its Profit Before Tax (PBT), is a cause for concern. This suggests that the company's income from non-business activities is high, which is not a sustainable business model.

In terms of earnings, Ravindra Energy's Earnings per Share (EPS) for the quarter is at its lowest in the last five quarters, at Rs -4.10. This decline in profitability is not favorable for shareholders.

Based on these financial results, MarketsMOJO has given a 'Strong Sell' call for Ravindra Energy's stock. Investors should carefully consider these factors before making any investment decisions.